HK OFFICIALS TELL DEPUTY SECRETARY OF CONTINUED

C O N F I D E N T I A L SECTION 01 OF 02 HONG KONG 001727 SIPDIS STATE FOR D STATE FOR EAP/CM STATE FOR EB/TRA/OTP STATE FOR ISN/WMD, S/CT DHS FOR RICHARD DI NUCCI DOE FOR DAVID HUIZENGA E.O. 12958: DECL: 09/17/2018 TAGS: ASEC ECON EWWT PREL ETRD HK SUBJECT: HK OFFICIALS TELL DEPUTY SECRETARY OF CONTINUED HKG SUPPORT FOR SECURE FREIGHT INITIATIVE REF: 07 HONG KONG 2134 Classified By: Consul General Joseph Donovan for reasons 1.4 (b) and (d ). ¶1. (C) Summary: The Deputy Secretary visited Hong Kong,s container port and discussed the Container Security Initiative (CSI) and Secure Freight Initiative (SFI) programs with U.S. Customs and Border Protection (CBP) representatives, HKG officials and a major container port terminal operator on September 17. The Deputy Commissioner of Hong Kong,s Customs and Excise Department (HKC&ED) reiterated the HKG,s support for the SFI program until the HK pilot period ends in April 2009, with broad-based cooperation on non-proliferation efforts expected to continue thereafter. The Deputy Commissioner told the Deputy Secretary that cooperation remained excellent between HKC&ED officers and USG security officials at the port. The Deputy Secretary examined real-time threat assessments conducted by CSI targeting officers using the Automated Targeting System (ATS) for shipments bound for the United States. He emphasized the importance of programs like CSI and SFI as crucial counterterrorism measures. End Summary. =========================== Background on HK Port Visit =========================== ¶2. (C) The Deputy Secretary received an overview on September 17 of the multi-faceted SFI pilot program underway since November 2007 at Hong Kong,s Kwai Chung container port. Sean Kelly, CEO of Modern Terminals Ltd. (MTL),explained his company,s involvement in the SFI program. MTL is the second largest terminal operating company at Hong Kong,s port -- currently the largest of four foreign ports scanning U.S.-bound containers under the SFI program. The Hong Kong port ranks third in terms of U.S.-bound shipments of goods, and the HKG was among the first in the world to help implement the CSI program, designed to detect containers that may be carrying Weapons of Mass Destruction (WMD) or their components. ¶3. (C) The SFI pilot program in Hong Kong builds upon existing port security measures already in place at MTL, such as CSI and the fully integrated non-intrusive inspection (NII) technology of the Integrated Container Inspection System (ICIS). SFI enhances the USG,s ability to scan containers for nuclear and radiological materials. This capability intensifies ongoing CSI activities by combining the SFI data with other available risk assessment information to improve risk analysis, targeting and security of high-risk containers overseas. The SFI pilot was launched in November 2007 in Hong Kong and extended by mutual consent with the HKG through April 2009. Thus far, no U.S.-bound container scanned using SFI equipment in HK has been found to contain radiological materials usable in a WMD. ============================================= == Collection/Dissemination of Cargo Scanning Data ============================================= == ¶4. (C) The Deputy Secretary viewed the ICIS lane that examines outbound containers using an array of inspection technology, as well as the ICIS Control Room that imports and integrates all the data derived from those components. Radiation Portal Monitor (RPM),Optical Character Recognition (OCR) and Vehicle and Container Inspection System (VACIS) image data gathered on containers bound for the United States is encrypted and transmitted simultaneously from the ICIS Control Room to HKC&ED, on-site U.S. Customs and Border Patrol (CBP) officers at the port, and the DHS/CBP National Targeting Center-Cargo (NTCC). The data allows HKG and USG security officials to better identify high risk containers. Once identified as high risk, HKC&ED officials use hand-held measurement devices to more closely inspect the container and physically search its contents, if necessary, under the observation of HK-based CSI officials from the United States. Thus far, no containers have required a physical search in HK, based on data derived under the SFI pilot program. ==================================== HONG KONG 00001727 002 OF 002 HKG Continues to Support SFI Efforts ==================================== ¶5. (C) The Deputy Commissioner of HKC&ED, Luke Au-Yeung, briefed the Deputy Secretary about his department,s active participation in the SFI pilot program. Echoing comments from HKG port security officials to Senator Lieberman during his visit to the port in August 2007 (reftel),Au-Yeung emphasized the HKG's support for the SFI pilot program. He said, "So far, implementation of SFI has not affected the operating capacity of the port." Au-Yeung described the cooperation between HKC&ED and USG officials at the port as "very good and very smooth." ¶6. (C) The Deputy Secretary viewed the SFI Central Alarm Station used by HKC&ED officials to assess data from the previously described ICIS Control Room. With the exception of two desktop computers provided by the USG, all costs to establish the Alarm Station were borne by the HKC&ED. ============================================= ====== USG Targeting System Identifies High Risk Shipments ============================================= ====== ¶7. (C) Alex Ho, Acting CSI Team Leader, briefed the Deputy Secretary about how CBP,s Automated Targeting System (ATS) in Hong Kong combines on-site SFI scanning data with information from other USG systems and sources. The ATS integrates all known information about a given shipment and is used as the primary tool by CBP-CSI targeting officers to assess the shipment,s potential risk. The system is fully automated and allows CBP officials at the port to identify and focus their attention on potential high risk shipments bound for the United States. The Deputy Secretary praised the CSI and SFI programs as crucial counterterrorism measures. ¶8. (U) September 17, 2008; 16:30; Hong Kong. ¶9. (U) Hong Kong Port Visit Participants: United States Deputy Secretary Negroponte Deputy Assistant Secretary John Norris Kaye Lee, Special Assistant Ted Wittenstein, Special Assistant Consul General Joseph Donovan Richard Powell, CBP Attach Benjamin Weber, Control Officer Jeff Hilsgen, Economic Officer (notetaker) Hong Kong Luke Au-Yeung, Deputy Commissioner, HKC&ED Albert Chan, Head of Ports and Maritime Command, HKC&ED Kwong Chow, Assistant Commissioner (Boundary and Ports), HKC&ED H C Liu, Group Head (Ports Control),HKC&ED Ying-ho Lam, Divisional Commander, Liaison Bureau, HKC&ED Modern Terminals Ltd Sean Kelly, Chief Executive Officer Anders Dommestrup, Chief Operating Officer Benjamin Lai, General Manager, Operations Christen Ho Ka Nam, Security Executive DONOVAN